Ted Sickinger has the report in the Oregonian, here. This will start in 2017. I’m no actuary, but the combination of lower assumed earnings and longer assumed life expectancies will mean a decrease in the monthly payout from the PERS annuity you get when you retire. At the same time lower assumed earnings will mean that employers will need to pay in more to keep the PERS books balanced, and longer assumed life expectancies will mean employers will have to pay in more to cover the expected costs of the annuities of past retirees.
Will VPFA Jamie Moffitt and “Around the 0” spin this increase in the cost of UO retirement benefits as an increase in the total compensation of UO faculty and staff, during the current union bargaining. Maybe something like
“Look! Your already generous benefit package will get even more generous in 2017! You don’t need a pay raise!”
A statement like this would be transparently false, but given that there’s still no retraction of the most recent “Around the O” post on benefits and the UO Senate White Paper goals, it would be in keeping with past UO statements.
One way that UO might consider saving money would be to revise the current Tenure Reduction Program, to encourage higher paid senior faculty to retire, so they can be replaced with cheaper, younger ones. The current TRP is not a very good deal for faculty, and since it is not aimed at faculty on the margin of retiring or continuing to work, it is not an effective program from the cost side either.